• IonQ (NYSE: IONQ) received an "Outperform" rating from Wedbush, despite the update being classified as a hold.
• IonQ is acquiring cybersecurity firm Elisity for up to $1.3 billion in an all-stock deal, aiming to enhance its security offerings against AI-driven and quantum threats.
• The acquisition's valuation and the all-stock nature of the deal raise concerns about potential investor dilution, with IonQ stock experiencing a 9.07% decline.

IonQ (NYSE: IONQ) develops quantum computing technology and security tools. Wedbush reiterates its Outperform rating on the stock, while the update is classified as a hold. IonQ trades at $36.27 when the update is posted.

The rating comes as IonQ plans to acquire cybersecurity firm Elisity in an all-stock deal worth up to $1.3 billion, as highlighted by CNBC. That amount includes up to $150 million in payments tied to performance. The deal is expected to close in the fourth quarter, subject to regulatory approval.

Elisity makes Zero Trust software, which checks access to systems rather than automatically trusting users inside a network. IonQ plans to combine it with its existing security tools to help enterprise and government customers address AI-driven attacks and potential threats from quantum computers.

The acquisition raises questions about its price because IonQ does not disclose Elisity’s revenue, as highlighted by The Motley Fool. Paying with shares can also dilute existing investors’ ownership. IonQ is down $3.62, or 9.07%, at $36.27, with approximately 31.73 million shares traded.